Slide 1: Third Quarter 2016 Earnings Conference Call
Third Quarter 2016 Earnings Conference Call NOVEMBER 2, 2016 1 THIRD QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 2: Forward-looking statements
Forward-looking statements Today’s presentation includes forward-looking statements that reflect Bunge’s current views with respect to future events, financial performance and industry conditions. These forward-looking statements are subject to various risks and uncertainties. Bunge has provided add
Slide 3: CEO's comments
CEO’s comments Q3 results: • Agribusiness more challenging than expected • Strong performance in Food & Ingredients • Sugar & Bioenergy reflecting stronger fundamentals • Agri-Foods ROIC continues to exceed WACC Continue to execute on strategy • Increase value added platform – announced acquisition
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Sep 30 Nine Months Ended Sep 30 $ in millions, except EPS data 2016 2015 2016 2015 Net income attributable to Bunge $118 $239 $474 $588 Net income (loss) per common share from $0.79 $1.42 $3.24 $3.53 continuing operations – diluted (1) Net income (loss
Slide 5: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 10.0% 8.3% 8.2% WACC = 7% 7.0% As of As of Dec 31, 2015 Sep 30, 2016 5 THIRD QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Nine Months Ended Sep 30 $ in millions 2016 2015 Funds from Operations (1) $1,169 $745 Changes in Operating Assets & Liabilities $(534) $(218) Cash provided by (used for) Operating $635 $527 Activities Bunge has committed credit facilities of ~$5.0 billion, of whic
Slide 7: Right balance: capital allocation priorities
Right balance: capital allocation priorities Balance sheet strength (Target BBB credit rating) • Investment grade critical • Commodity companies require capital buffer Reinvest in the M&A Return capital business (Capex) to shareholders • Productivity • Filling gaps in Agribusiness • Dividends: ($191
Slide 8: 2016 Outlook
2016 Outlook Agribusiness Expect significant Q4 EBIT improvement vs Q3 Q4 results to be driven by Northern Hemisphere operations • U.S. soy, Canadian canola and European sunseed operations running at high utilization and at good margins • Soymeal demand should increase during the quarter as feed for
Slide 9: 2016 Outlook
2016 Outlook Sugar & Bioenergy Expect 2016 EBIT of $60 to $70 million vs 2015 adjusted EBIT of $(22) million • Higher sugar and ethanol prices, lower cost structure and more efficient agricultural operations • Assumes normal end of the season weather patterns Fertilizer Expect 2016 EBIT of approxima
Slide 10: 2017 Preview
2017 Preview Agribusiness adjusted EBIT (US$ million) Agribusiness Range: $895 - $1,054 • South America expecting record crops, which aligns well with our footprint • Brazil farmers have only priced small percentages of 2017 soy and corn production • Expect return to normal levels of soy meal inclus
Slide 11: Thank you
Thank you 11 THIRD QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 12: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 13: Segment volume highlights
Segment volume highlights Quarter Ended Sep 30, Nine Months Ended Sep 30, In thousands of metric tons 2016 2015 2016 2015 Agribusiness 35,079 36,154 101,776 100,200 Oilseeds 14,178 15,386 44,133 45,333 Grains 20,901 20,768 57,643 54,867 Edible Oil Products 1,762 1,733 5,106 5,005 Milling Products 1,
Slide 14: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Sep 30 Nine Months Ended Sep 30 2016 2015 2016 2015 Merchandising/Trading Volume (000 mt) 1,765 2,356 5,172 6,019 Milling Volume (mmt of cane) 8.1 7.9 15.2 15.6 Industrial Product Sales Volumes: Sugar (000 mt) 355 290 616 716 Ethanol (000 mt) (1) 522 462 1,
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before inter
Slide 16: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT: Quarter Ended Sep 30 Nine Months Ended Sep 30 ($ in millions) 2016 2015 2016 2015 Net income attributable to Bunge $118 $239 $474 $588 Interest income (13) (18) (37) (42) Interest expense 73
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Continuing operations: Net in
Slide 18: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average September 30, December 31, (US$ in m illions) 2016 2015 Operating income before income tax $ 1,139 $ 1,290 (1) Effective
Slide 19: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains & charges and Sugar and Bioenergy segment EBIT Trailing 4 Trailing 4 Quarter Average Quarter Average September 30, December 31, (US$ in m illions) 2016 2015 Operating income before incom
Slide 20: Non-GAAP reconciliation
Non-GAAP reconciliation Operating income before income tax utilized for ROIC calculation Below is a reconciliation of Income from continuing operations before income tax to Operating income before income tax: Trailing 4 Trailing 4 Quarter Average Quarter Average (US$ in m illions) Septem ber 30, 201